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Press Release 30 June 2008 R148m FDI into South Africa as

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Press Release 30 June 2008 R148m FDI into South Africa as Powered By Docstoc
					Press Release 30 June 2008 R148m FDI into South Africa as Flagstone Reinsurance and Imperial Reinsurance conclude deal Flagstone Reinsurance Holdings Limited (Flagstone Re) (listed on the New York Stock Exchange) and Imperial Holdings Limited, today announced the finalisation of the agreement signed on 11 March 2008. Flagstone has acquired 65% of Imperial Re, investing R148m, thereby increasing the capital of the local company by R70m, to R210m. The company will be re-named Flagstone Reinsurance Africa Limited, and Imperial Holdings will retain a 35% shareholding. Steve Smith will remain as managing director of the company, while chairman of Flagstone Re, Mark Byrne will become the new chairman of Flagstone Reinsurance Africa. Commenting on today’s development, Byrne said: “We are pleased that the closing formalities are complete, and look forward to working with the Imperial Re team. Steve Smith and his colleagues have already developed plans to integrate certain operations and systems with Flagstone Re’s, and to leverage the technical resources we can now offer to the company”. Other new Board members include David Brown, CEO of Flagstone Re, Guy Swayne, CUO, and Frederic Traimond, COO, emphasising Flagstone Re’s high-level commitment to the new entity. Imperial Holdings remains committed to Flagstone Reinsurance Africa and will retain its board representation. Hubert Brody, Imperial Holdings CEO said: "The sale of our stake in the business frees up approximately R80m of capital for Imperial Holdings, and unlocks Imperial Re's true potential throughout subSaharan Africa. Imperial Holdings’ strategy will continue its focus on core businesses in which we have significant market leading positions which will serve as a platform for future value creation and growth. We remain invested in Flagstone Reinsurance Africa as we see accelerated growth opportunities through the international investment, and are committed to both the business and the customer base”. Customers of Flagstone Reinsurance Africa will be exposed to a stronger company with a major international shareholder. The new entity will offer unique benefits of both local understanding, knowledge and commitment, as well as international expertise, experience and capital. Flagstone Re’s capital and technical support will enhance the company’s services, increase market penetration and broaden product distribution, both by line of business and geographically within Africa. Steve Smith, Managing Director of Imperial Re commented: “Local employees are pleased that the deal has been concluded and look forward to reaping the

benefits of our new majority shareholding. Flagstone Reinsurance Africa will be applying for an AM Best rating that we are sure will give our clients the level of security that they seek from their reinsurers.” Notes to Editors About Imperial Holdings Imperial Holdings Ltd, listed on the JSE, is a diversified multinational mobility group with activities spanning logistics, car rental and related tourism services and on motor vehicle and related financial operations. Its interests include a 49.9% shareholding in Imperial Bank. While capitalising on the synergies between its business entities, its decentralised management structure actively encourages entrepreneurship, innovation and industry-specific best practices. About Flagstone Reinsurance Holdings Limited Flagstone Reinsurance Holdings Limited, through its operating subsidiaries, is a global reinsurance company that employs a focused, technical approach to the property, property catastrophe, and specialty reinsurance business. Flagstone Re and Flagstone Reassurance Suisse have received "A-" financial strength ratings from both A.M. Best and Fitch Ratings, and "A3" ratings from Moody's Investors Service. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 This press release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included or referenced in this release which address activities, events or developments which we expect or anticipate will or may occur in the future are forward-looking statements. The words "will," "believe," "intend," "expect," "anticipate," "project," "estimate," "predict" and similar expressions are also intended to identify forward-looking statements. These forwardlooking statements include, among others, statements with respect to Flagstone's: growth in book value per share or return on equity; business strategy; financial and operating targets or plans; incurred losses and the adequacy of its loss and loss adjustment expense reserves and related reinsurance; projections of revenues, income (or loss), earnings (or loss) per share, dividends, market share or other financial forecasts; expansion and growth of our business and operations; and future capital expenditures. These statements are based on certain assumptions and analyses made by Flagstone in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors believed to be appropriate in the circumstances. However, whether actual results and developments will conform to our expectations and predictions is subject to a number of risks and uncertainties that could cause actual results to differ materially from expectations, including: the risks described in our

Annual Report or Form 10-Q; claims arising from catastrophic events, such as hurricanes, earthquakes, floods or terrorist attacks; the continued availability of capital and financing; general economic, market or business conditions; business opportunities (or lack thereof) that may be presented to it and pursued; competitive forces, including the conduct of other property and casualty insurers and reinsurers; changes in domestic or foreign laws or regulations, or their interpretation, applicable to Flagstone, its competitors or its clients; an economic downturn or other economic conditions adversely affecting its financial position; recorded loss reserves subsequently proving to have been inadequate; other factors, most of which are beyond Flagstone's control. Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements, and there can be no assurance that the actual results or developments anticipated by Flagstone will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, Flagstone or its business or operations. Flagstone assumes no obligation to publicly update any such forward-looking statements, whether as a result of new information, future events or otherwise. For More information Flagstone Reinsurance Holdings Limited, Hamilton Brenton Slade Enquiries: Imperial Holdings: Tak Hiemstra Issued by: Brunswick SA Anne Dunn
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+441-278-4303

+27 83 325 4732 +27 11 502 7300 +27 82 448 2684 +27 82 490 4182

Carol Roos

Amanda Chamley Senior PA BRUNSWICK GROUP LLP 23 Fricker Road Illovo Boulevard Johannesburg South Africa Telephone +27 11 502 7300 (sw) ext 423 Direct Telephone +27 11 502 7423 Fax +27 11 268 5747

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+27 83 415 6295

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